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LANXESS Zwijndrecht - Media roundtable

May 3rd, 2012

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LANXESS – enabler of Green Mobility

LANXESS Butyl Business

LANXESS in Belgium

Agenda

Werner Breuers, Board of Management of LANXESS AG

Ron Commander – Head of the Business Unit Butyl Rubber

Eddy Walraven – Managing Director LANXESS Rubber - Zwijndrecht

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LANXESS – enabler for Green MobilityDr. Werner Breuers, Board of Management of LANXESS AG

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LANXESS – a global player in the specialty chemicals industry

Global success storyRoughly 16,500 employees in 30 countries48 production sites worldwide2011 sales of EUR 8.8 billion

Specialty chemical companySpun-off from Bayer in 2004Focus on: plastics, rubber, specialty chemicals, intermediates

Strategy of targeted innovationVital role in LANXESS’ growthFocus on process and product innovation

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LANXESS Innovation Expenditures – Facts & Figures 2011

R&D Costs - Figures

R&D expenditures [€ m] /% of sales

97

116

101

1.5%

2.0%

1.6%

2008

2009

2010

1.6% 1442011

Employees - Figures

Innovation headcount / % of total headcount

3.1%

3.4%

519

489

453

3.5%

2008

2009

2010

7314.5%2011

Project - Figures

Innovation projects Trendline 2008 - 2011

110

160 170210

Product innovation Process innovation

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LANXESS capitalizing on global megatrends

Urbanization

AgricultureMobility

Water

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Innovation & Technology

Green Tires Lightweight Materials

Sustainable Leather

Bio-based Raw Materials

Biofuels & Renewable

Energy

Technical Products

LANXESSContribution

LANXESS – enabler of Green Mobility

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Tire labeling aims to improve safety, ecological and economical efficiency of road trafficThe label informs consumers about key tire performance parameters- impact on fuel efficiency associated with

rolling resistance - impact on safety associated with wet grip - external noise levelTire labeling becomes mandatory from November 2012, meaning that all tires* produced as of July 2012 must have the label

Regulation 1222/2009/EG

Fuel

effi

cien

cy

Noise performance

Wet

grip

Indicating three key parameters of tires

EU tire labeling – enables consumers to make informed purchasing decisions

Source: Regulation (EC) No 1222/2009 of the European Parliament and of the Council of 25 November 2009 on the labeling of tires with respect to fuel efficiency and other essential parameters: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:342:0046:0058:EN:PDF

* passenger car, light truck and heavy duty vehicle tires

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Key Facts20-30% of a vehicle’s fuel consumption is related to tires

24% of a vehicle’s CO2 emissions are related to tires

New EU regulations aim toImprove energy efficiency and safety standards of future tiresEnable consumers to make informed purchasing decisions

Modern tires improve energy efficiency in traffic

Sources: BMW, Der Reifen im Spannungsfeld zwischen hohen technischen Anforderungen und immer schärfer werdenden gesetzlichen Auflagen, 2008Michelin, CO2 Reduzierung – Ein Beitrag der Reifenindustrie, 2008

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‘Green Tires’ are vital for sustainable future mobility(Calculation based on a car with a gasoline engine and an average fuel consumption of 10 L/100 km)

Reduced rolling resistance

Reduced fuel consumption

Improved environmental impact

Enviromental impact of ‘Green Tires’

Reduced CO2 emissions

Source: www.auto-motor-und-sport.de/eco/verbrauchsreduzierung-rollwiderstandsoptimierte-reifen-alles-ueber-den-reifen-rollwiderstand-1899808.html

- 30 %

- 0.5 l/100 km

- 1.2 kg/100 km

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Safety impact of ‘Green Tires’

High performance tires improve safety significantlyBraking distance of “A Tire” is up to 21 metres shorter compared to a “F Tire”

Braking distance

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While ‘Green Tires’ may cost a little more up front, they reduce fuel consumption by 5% to 7%Consumers will benefit in the long run from better fuel economy, translating into savings at the gas pumpExample: A person traveling 12,500 km per year could easily save up to 100 EUR of fuel each year. The additional investment of 20 to 50 EUR per tire is amortized within two years

‘Green Tires’ offer savings potential

‘Green Tires’ – a worthwhile investment

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Demand for high-performance tires is growing

LANXESS offers the right products for ‘Green Tires’

Increasing tire demand

Increasing demand for tires

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Tread

Under-tread

Side-wall

Carcass

Innerliner

LANXESS premium products for ‘Green Tires’ – Overview

Tirecomponents

LANXESS products

Synthetic rubber Additives

VSL CB CZ , NZ,DZ, MOZ

4020, 4010,NA, 4030, 3100, HS

10, 11,9203 900

Aflux®

Aktiplast®

Rhenodiv®

Rhenocure®

Rhenosin®

Rhenogran®

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LANXESS – Butyl businessDr. Ron Commander, Head of business unit Butyl Rubber

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LANXESS premium products for ‘Green Tires’ –Butyl and halobutyl rubber

Innerliners made of butyl rubber are highly impermeableto air help prevent under-inflation

Butyl rubber in tread compounds softer tires and better grip and comfort

Optimized rolling resistance increased fuel efficiency and reduction of CO2 emissions

Improved wet traction greater safety

Innerliner

Tread

Main brands

Characteristics

Benefits

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LANXESS Butyl Rubber – A premium supplier of high-quality butyl and halobutyl rubbers

Applications butyl rubber

Products: Regular butylHalobutyl

Special characteristics: High impermeability to gases and liquidsMain brands:

Facts and figures

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Though diversification has been a key strategic driver, tires remain the main applications

Global demand byapplicationLANXESS butyl global sales by application

20102007 2010

Tires Pharma

Gum Others

Source: LANXESS internal market intelligence

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Every tire needs butyl rubber for air retention

In treads – Enhancing the dynamic properties

- Improved wet and dry traction performance adding to tires’ safety performance

- Similar rolling resistance and tread durability

Premium butyl rubber enables high-performance tires

Use in treads

Tread

Innerliner

Butyl rubber in tires

Halobutyl modified tread

Ø high-performance tire

Wet tractionRolling

resistance

ReinforcementDurability

Drytraction

Source: LANXESS Butyl R&D

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Overall long-term (2011-2015) CAGR: 4-5%

‒ APAC: ~5% (Korea ~2%)

‒ EMEA: ~2%

‒ Americas: ~3% (LATAM ~6%)

Further acceleration in global butyl rubber demand growth, especially in emerging markets

Market development Global demand for butyl rubber

2000 2004 2008 2012e 2016e 2020e 2024e

Halobutyl

Regular butyl

Regular butyl0%

34%

100%World LANXESS

0%15%

100%

HalobutylHalobutyl

Regular butyl

Butyl share

Please note: Information and details are not to scale; Source: LANXESS internal market intelligence

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Radialization as an indicator for rising use of tubeless tires made of halobutylKorea already a mature market with radialization>95%China’s radialization rate expected to grow by ~16%* (CAGR 1995-2013)India with highest growth potential due to only 10%-12% radialization rate for truck tires

Better road infrastructure and radialization stimulate global trend for radial truck and bus tires

Radialization rate for truck and bus tires 2009 [%]

0

100

CentralEurope

NorthAmerica

SouthAmerica

Asiaother

MiddleEast

ØWorld

68

EasternEurope

ChinaIndia

Regional focus LANXESS

Source: Michelin Factbook 2009, LANXESS market intelligence; * www.bekaert.com, LANXESS market intelligence

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Investing to become the first supplier with a truly global manufacturing footprint for butyl rubber

Butyl world map 2011 Market landscape 2011

LANXESS sitesSarnia, CanadaZwijndrecht, BelgiumSingapore (2013)

EuropeLANXESSExxon

RussiaNizhnekamsk.Sibur

JapanJV Exxon & JSR

ChinaSinopecCenway

SingaporeLANXESS

AmericasLANXESSExxon

ExxonMobilLANXESSLANXESS announced capacitiesNkNk, Sibur, Japan Butyl Co., Sinopec, Cenway

Please note: Information and details are not to scale; Source: LANXESS internal market intelligence based on CMAI, SRI

Exxon

LANXESS

Nizhnekamskneftekhim

Sibur

Sinopec

Comparison by nameplate capacities

Cenway

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Debottlenecking of Antwerp plant 2006

Two step debottle-necking of Sarnia site 2007/2008

Second debottle-necking of Antwerp production started 2010

New grass-roots Singapore facility on stream by 2013

By 2013 investment of over € 500 m adding approximately 190 ktbutyl capacity to the market

Commitment and investment to serve demand

Source: LANXESS internal figures

0

100

200

300

400

500

2005 2009 2013

+33%

+40%

+86%kt

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Butyl rubber – Enabling future mobility

Markets grow –LANXESS prepared to serve

Technical leadership will be strengthened

Best-in-class technology with focus on innovative, resource efficient processes

THE reliable long-term supplier for sustainable growth globally

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LANXESS in BelgiumEddy Walraven, Managing Director LANXESS Rubber, Zwijndrecht

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LANXESS in Belgium – Four plants linked to Green Mobility

Contributing to Green Mobility- Butyl and rubber chemicals for tires and

car parts (e.g. wipers)- Caprolactam and glass fibers as

intermediates for high-tech plasticsLANXESS has two legal entities in BelgiumLANXESS nv

- Caprolactam production in Lillo- Glass fibers and rubber chemicals

production in KalloLANXESS Rubber nv

- Butyl rubber production in Zwijndrecht

LANXESS production sites

Antwerp

Harbor of Antwerp

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Second most important production area for LANXESS worldwideInvestments in Belgian plants

Since 2004: nearly EUR 450 millionFour world scale plants on both river banks in the Antwerp docklands1,400 employees in three Business Units

Butyl RubberRubber ChemicalsSemi-Crystalline Products

LANXESS in Belgium - Ongoing investments

Antwerp – Excellent logistical region

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1963 – start butyl rubber plant with capacity 30.000 ton / year

Ongoing investments plus 20 million €, capacity increase +10%

6th reactor

debottlenecking projects

Strategic partner development new rubber technologies

2011 – 70 extra jobs

2013 – 50 years celebration with capacity planned + 150.000 ton / year

LANXESS Rubber in Zwijndrecht

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LANXESS Rubber is a flexible Butyl and Halobutyl rubber plant

With ± 450 employees we manufacture 6 types of synthetic rubber of high standing quality by copolymerization of isobutylene & isoprene and addition of bromine or chlorine

Activities LANXESS Rubber

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